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Turkey has unveiled stringent Anti-Money Laundering (AML) regulations for cryptocurrency transactions, set to take effect on February 25, 2025. These measures enable crypto service providers to halt transactions deemed “risky” due to insufficient user information.
Enhanced Cryptocurrency Oversight
Announced in late December 2024, the new regulations align with global advancements in crypto regulatory frameworks, such as Europe’s Markets in Crypto-Assets (MiCA) bill. According to a December 25 statement published in the Official Gazette of the Republic of Turkey, users conducting transactions exceeding 15,000 Turkish lira (approximately $425) will now be required to submit identifying information to crypto service providers. However, transactions below this threshold are exempt from this requirement.
The regulation aims to curb illicit financial activities such as money laundering and terrorism financing within the cryptocurrency sector. Crypto providers unable to collect sufficient sender information may classify transactions as “risky,” with the possibility of halting such transfers. The directive further states:
“In case sufficient information cannot be obtained, the issues of not performing the transfer or limiting the transactions made with the financial institution in question or terminating the business relationship will be considered.”
A Booming Crypto Market with Increasing Regulation
Turkey, ranked as the fourth-largest cryptocurrency market globally as of September 2023, reported an estimated trading volume of $170 billion—surpassing markets like Russia and Canada, according to Chainalysis. The new AML regulations underscore the country’s efforts to bring its burgeoning crypto market under robust regulatory oversight.
In addition to transaction monitoring, service providers will need to verify identifying details for wallet addresses not previously registered. These measures are expected to enhance transparency and security in the nation’s cryptocurrency ecosystem.
Regulatory Developments Leading to Stricter Oversight
Turkey’s latest crypto policy builds upon the “Law on Amendments to the Capital Markets Law,” which came into effect on July 2, 2024. This law laid the foundation for regulating crypto asset service providers, prompting the Turkish Capital Markets Board (CMB) to receive 47 license applications by August 2024. Despite these developments, the use of cryptocurrencies for payments remains prohibited, as initially legislated in 2021.
Tax Implications and Broader Impact
While Turkey currently does not tax cryptocurrency profits, discussions are underway to introduce a minor transaction tax of 0.03%, potentially boosting the national budget. These measures demonstrate Turkey’s commitment to balancing innovation in the crypto sector with regulatory compliance.
The introduction of these AML regulations marks a significant step in Turkey’s journey toward fostering a secure and compliant cryptocurrency market, ensuring alignment with global standards while addressing local challenges in the evolving digital finance landscape.
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